Morrison provides GST top-up for NT

Federal Treasurer Scott Morrison is handing the Northern Territory a $260 million GST top-up after the Grants Commission cut its share in last month's 2018/19 revenue carve-up.

Mr Morrison said he was not comfortable with the independent carve-up outcome as GST represents about half of the NT's total revenue.

"We are committed to ensuring that essential services for Territorians can be delivered," Mr Morrison told reporters in Alice Springs on Monday.

The formula used to distribute GST revenue is being reviewed by the Productivity Commission.

"The GST issues are being worked through at the moment ... and we'll obviously look more at this question down the track once we get that review back and work on that over the back part of this year," Mr Morrison said.

With the May 8 federal budget in sight, the Turnbull government is also committing $550 million for five years to support remote housing in the territory, which will start in 2018/19 and be matched by the NT government.

"We can reduce the overcrowding, improve the living conditions of indigenous Australians," the treasurer said.